While many iPhone devs probably haven't struck it rich (just as many of the apps flooding the store haven't yet been strike-it-rich worthy), quality products that find an audience are still proving to be massive income sources for some developers reports Fake Steve Real Dan Lyons in Newsweek:

Greenstone, 41, has been writing games for Apple's computers for 21 years. But he says he's never seen anything like the iPhone apps phenomenon, which this year will deliver $5 million in revenue for him. "It's crazy. It's like lottery money. In the last four and a half months we've made as much money off the retail sales of iPhone apps as we've made with retail sales of all of the apps that we've made in the past 21 years—combined." Business is so good that Greenstone won't even bother writing for the Mac anymore.

Daniel wrote in to let us know the obvious: Apple rejected iBoobs from the App Store. Duh or d'oh, we guess, depending on your point of view. Did the dev think Pull my Finger made this okay? Cheer or jeer the video if you have to.

I searched around for other high profile apps and found quite a few developers have chosen to SEO optimize their app description. So first we have apps naming themselves with blanks at the beginning to take advantage of alphabetical listing in the store. Then we have apps going from Free to Paid to take advantage of the top 100 list. And now this SEO hack, what’s next?

So the reason for rejection of this app was presumably, Boobs are bad mkay? Because surely this doesnt count as pornography. I expect an 'explicit' category/tag for the app store to eventually hit, which will allow for apps like this.
I look forward to endless iBoob clones when that day comes. For now i will make do with with the gazillion Fart machines now flooding the store.